Airbnb announced Thursday it will introduce a "Reserve Now, Pay Later" feature that allows guests to secure accommodations without immediate payment. The initiative aims to reduce upfront financial burden and increase flexibility in travel planning.
The feature applies to listings worldwide with "flexible" or "moderate" cancellation policies. Users can confirm reservations without paying the full accommodation fee until just before the free cancellation period ends. Payment deadlines are set before the cancellation window closes, ensuring hosts retain sufficient time to rebook if a reservation is canceled.
Airbnb said the feature has positively impacted booking growth. Following its initial rollout in the United States last summer, booking growth accelerated in the fourth quarter compared to the third quarter of 2025, according to the company. "As payment flexibility for guests increases, booking conversion rates also improve," the company stated.
Demand for payment flexibility is supported by survey data. According to a survey of Korean travelers conducted by Airbnb and Focaldata, 72% of respondents said flexible payment options are important when booking vacations. Seventy-nine percent reported having used such options, while 43% said they had missed desired accommodations while coordinating costs with travel companions. Eighty-six percent indicated plans to use flexible payment options for their next trip.
This demand is particularly pronounced for group travel, where immediate payment requirements often create friction when splitting expenses among participants. The "Reserve Now, Pay Later" feature addresses this challenge by separating booking confirmation from actual payment timing.
Airbnb also operates a "Pay Part Now, Part Later" option, which allows guests to pay a portion at booking and settle the balance closer to check-in. The company said these payment options position it to meet growing travel demand for major global events, international city trips, and nature-based experiences.
The "Reserve Now, Pay Later" feature is immediately available to Korean guests.